What changed
RBI has issued a circular reminding RRBs to comply with the Bankers' Books Evidence Act, 1891, specifically Section 2A, when submitting computer-stored data as evidence. This follows a court observation in Maharashtra where a civil judge advised RBI to ensure banks provide the prescribed certificate. The circular emphasizes that without the certificate, courts are not obliged to admit the document as evidence.
What it means for you
RRBs must now ensure that every computer printout or data submitted to a court is accompanied by two certificates: one from the principal accountant or branch manager confirming it is a true printout, and another from the person in charge of the computer system detailing safeguards, data transfer methods, and system integrity. Failure to comply could lead to evidence being rejected, impacting legal cases involving loan recovery or fraud.
What you must do
- Train branch managers and accountants on the certificate requirements under Section 2A of the Bankers' Books Evidence Act, 1891.
- Update internal procedures to ensure that all computer printouts submitted to courts include the mandatory certificates.
- Coordinate with IT teams to document system safeguards, data transfer methods, and verification processes as required by the certificate.
- Review past submissions to courts and rectify any missing certificates to avoid evidence rejection.
Who it affects
Regional Rural Banks (RRBs), Branch managers and principal accountants of RRBs, IT departments of RRBs handling computer systems, Legal teams of RRBs involved in court cases
What is the Bankers' Books Evidence Act, 1891, and why is it relevant?
It is a law that governs how bank records can be used as evidence in courts. Section 2A specifies that computer printouts must be accompanied by a certificate from the bank's accountant or manager and a system-in-charge, detailing data integrity safeguards. Without this, courts may not accept the evidence.
What happens if an RRB fails to attach the certificate?
The court is not obliged to admit the document as evidence without further proof. This could weaken the bank's case in legal proceedings, such as loan recovery suits.
Who should sign the certificate under Section 2A?
Two certificates are needed: one from the principal accountant or branch manager confirming the printout is a true copy, and another from the person in charge of the computer system describing safeguards and data handling procedures.